Liz McClarnon, 32, joined Atomic Kitten at 14 and spent freely when the big
cheques started to arrive. Though the band has reformed, she now has a more
grown-up attitude to money.

How did your childhood influence your work ethic and attitude to money?

I’m from a working-class background. My father is from Everton, my mother Garston. I was sent to a private school, Newborough, as my parents thought at the time that I was going to be an only child.

While there, I was exposed to the reality that other families had a great deal more money than we had. My mother saw it as a good lesson in teaching me the value of money.

At 13 I took a job washing dishes at the local care home at the weekends, where my mum also was employed. I was taught that you go out and get work in order to make money, and work hard. I’ve always been happy to employ that attitude in my life.

Has there been a time in your life when you didn’t know how you were going to pay the bills?

In my family’s life, yes. When my parents’ engineering company collapsed just before I joined Atomic Kitten, when I was 14 or 15, money was very tight. My parents had split up when I was 13, so my mum struggled quite a bit to bring us up.

It is only in hindsight that I have realised things were tough back then – she never complained or shared the worry with my brother or myself. During my adult life, I’ve had a few times when money wasn’t very available but I’ve never been completely without funds.

How much money did you earn when you were part of Atomic Kitten?

I was very young and still living at home when I joined the band and we started out being given £15 a week. When we got our record deal, at 17, our wages were £300 or £350, which for a youngster was pretty good.

I remember when I got a cheque for £1,000; I’d never seen that amount of money written on a cheque. I blew it all on a holiday with my boyfriend at the time. I did earn a considerable amount of money when the band was doing very well.

My income dipped a bit after the band split but since then I’ve done pretty well for myself. I have various income streams such as my own musical career, while TV presenting has been pretty regular work. I’m also now involved with a fashion label.

One of the nicest things is that twice a year I receive royalties on quite a few of the Atomic Kitten songs, which I helped write. It is very encouraging that songwriting can pay so well. The band has reformed via The Big Reunion TV show but in a fairly loose way – we may do gigs but no recording deals are being considered.

Liz on the BBC's Children in Need charity appeal

Did your win on Celebrity MasterChef in 2008 lead to other opportunities?

It did. I’ve appeared on TV cookery shows and cookery slots on lifestyle TV programmes, plus I have worked commercially with food brands. I have to be totally enthusiastic about a product. In the case of Florida grapefruit, I now really like the fruit after trying this one compared to normal grapefruit, and it is fun to use them in creating dishes.

What was your best business decision or best buy?

After joining Atomic Kitten, which led to so many opportunities, picking the right people to have around me has been key to my success. My manager, accountant, solicitor and the agents I work with are all good people. They weigh up every situation so well and work things to my best advantage.

And what has been your worst business decision?

About eight or nine years ago I found out about a property deal. Apartments in north London were being sold off cheaply because the developer had messed up on the plans for how many could be put into a building. I could have bought two flats as a duplex at a knockdown price.

But at the time, I thought, if something looks too good to be true, it usually is. I then ended up buying a house that was double the price and for the same footage. So I lost out. Just after that, I started listening to my accountant much more attentively.

Are you a saver or a spender?

I came out of the womb wanting to spend money. But although I would say that I have the ability to be a spender I am much less so these days. I’m making an effort to be sensible with money although I still love to spend it. If I am at home one night and the QVC channel is on the TV, I am in trouble.

Pop band Atomic Kitten

What’s been the most difficult lesson you’ve learnt about money or business?

I used to be far too free with lending to people I didn’t know very well. Some people think you have more money than you can spend so they decide they are not returning it to you, and they don’t tell you that. I have learnt that the hard way.

Also, I was naive about new car depreciation when I was much younger. I bought a very expensive Audi towards the end of my first stint with Atomic Kitten and didn’t realise that the car would lose value the minute I took possession of it.

Do you prefer to pay by debit card, credit card or cash?

I favour debit cards. I do have credit cards but don’t use them very often. I have been with my bank since I was 14, when the company used to come into our school, encouraging us to open accounts. I only carry a few pounds on me, possibly £20. I just don’t seem to need much cash as the card works for everything.

Do you have a personal pension or a long-term financial strategy?

Yes, I do have a personal pension, which I set up on the advice of my manager fairly recently. I own a property in Liverpool, which was the first house I bought, and the house where I live in north London.

What are your financial priorities for the next five to 10 years?

I am currently looking for a new home and thinking about having children some time in the near future. Apart from that, I want to continue earning from my various income streams. I have looked at opening a gastropub – that is a dream I’d love to fulfil, but I lost out on a really good venue so have put that on the back burner. I’ll keep working on my musical career, too.

Do you invest in stocks and shares?

No, I don’t.

If there was one thing you could change about the financial world, what would it be?

For everyday banking to be made separate from financial investment and futures banking. So if banks do decide to gamble with money, it shouldn’t affect the everyday people who use the banks.

Is there anything you don’t like about handling money?

I don’t enjoy seeing a lot of cash vanish from my pocket very quickly when out shopping, hence why I use cards.

Do you bank online?

I do, but I prefer to use telephone banking. I like to speak to someone.

Does money make you happy?

It’s definitely not everything but I work hard enough to make sure I’ll be comfortable at least. There’s a funny quote I heard once which goes something like: “Money doesn’t make you happy but it’s much nicer crying on a marble floor.” I definitely don’t live by that but it makes me chuckle whenever I get stressed about money.